1. Field of the Invention
The invention relates to automated rating systems and, more particularly, to techniques for transforming a human manipulable rating model into an executable representation thereof for preparation of quotes.
2. Description of the Related Art
In the insurance industry, rating is a sequence of calculations that translates the level of coverage provided by a particular policy into a dollar amount for the policy's premium. Rating calculations are based on the probability of events occurring. Typically, actuaries define a calculation sequence using statistical methods and census data about a group of individuals, such as all the individuals eligible for a specific insurance plan. Underwriters then use the sequences to evaluate risk, determining the rate and level of coverage for a particular plan. Product managers for an insurance company might also use a calculation sequence to evaluate the effect of market conditions. In order to run a calculation sequence for a particular insurance plan such as group life, the calculations need to include variables (for example, number of retirees) and standard adjustments (a number representing factors such as mortality rates and claims data) determined by the actuaries. When taken together, the calculation sequence, the variables, and the factor tables (or tables of adjustments) make up a rating model. An insurance company will typically have a rating model for each line of insurance it offers.
Unfortunately, current computational techniques generally require a high-level of programming expertise for creation and maintenance of a given rating model. In part because of this requirement, conventional rating systems are often maintained by an information technology department based on coding requests from actuaries or other business users. Cycle times for preparation of quotes or other rating results based on a new or revised rating model can vary from days to weeks. Using conventional approaches, computational times can be substantial, even for an existing rating model. As a result, existing approaches are generally inadequate for real-time quotes.